Brief Summary
Kenny Finance shares a list of ten "boring" but profitable businesses that generate substantial cash flow and are available for purchase. He emphasizes the importance of acquiring such businesses, highlighting their recession resilience and community support. He also touches on financing options like SBA loans and seller notes, encouraging viewers to consider business acquisition as a viable investment strategy.
- Elevator Repair
- Auto Collision
- Electrician
- Land Surveying and Mapping
- Moving Companies
- Plumbing
- HVAC Repair
- Commercial Cleaning
- Vet Clinics
- Auto Glass Repair
Boring Businesses to Buy Today
Kenny Finance introduces a list of ten cash-flowing businesses that viewers can potentially buy. He shares his experience from Wall Street, where he was involved in buying and growing businesses, and now aims to educate Main Street on how to own and buy businesses.
Elevator Repair
Elevator repair is presented as the first business opportunity. The constant use of elevators and escalators in various buildings necessitates regular maintenance and repairs, creating a demand for specialized technicians. An elevator company in Lexington, South Carolina, is highlighted as an example, with a selling price of $600,000, $1.7 million in revenue, and $116,000 in cash flow. While the margin is around 7% and the asking multiple is five times, the company's 76-year history indicates brand and customer loyalty. Kenny suggests submitting an offer of around $300,000 to $400,000 instead of paying $600,000.
Auto Collision
Auto collision repair is the second business discussed. The need for car repairs due to accidents ensures consistent demand. A multi-unit auto collision and paint franchise in Detroit, Michigan, is presented as an example, generating $4.5 million in revenue and $800,000 in cash flow. Selling for $2.4 million with an 18% margin and a three times multiple, this business offers the potential for expansion through acquiring more collision or paint shops.
Electrician
The electrician trade is highlighted as the third business opportunity due to high demand and a shortage of skilled workers. An electrical contractor business in Florida, selling for $2.2 million with $2.5 million in revenue and $700,000 in cash flow, is presented as an example. With a 28% margin and a 3.1 times multiple, this business is particularly attractive.
Land Surveying and Mapping
Land surveying and mapping is the fourth business discussed. These services are essential for defining property boundaries and identifying underground elements before construction. A land surveying firm in Orange County, California, is presented as an example, selling for $5.3 million with $4.4 million in revenue and $1.3 million in cash flow. Despite the high price and four times multiple, the business has a 30% margin and offers opportunities for modernization with AI and geospatial tech.
Moving Companies
Moving companies are presented as the fifth business opportunity, characterized by low capital expenditure and operating costs. A moving company in Washington County, Michigan, is highlighted, selling for $1.2 million with $2 million in revenue and $630,000 in cash flow. With a 30% margin and a 1.9 times cash flow multiple, this business is worth considering, especially for building a holding company.
Plumbing
Plumbing is the sixth business opportunity, noted for its high demand and potential for high prices due to long wait times. A commercial plumbing business in Indiana, selling for $3.5 million with $1.8 million in revenue and $700,000 in cash flow, is presented as an example. Despite the attractive 40% margins, the business is selling at a five times multiple, making it a competitive and expensive option.
HVAC Repair
HVAC repair is the seventh business opportunity, similar to plumbing in terms of high demand and profitability. An HVAC business in Hillsboro, Oregon, is highlighted, selling for $1.5 million with $658,000 in revenue and $275,000 in cash flow. While the cash flow margins are around 42%, the business is selling at a 5.5 times multiple, making it too expensive.
Commercial Cleaning
Commercial cleaning is the eighth business opportunity, focusing on cleaning commercial buildings and construction sites. A commercial cleaning business in Polk County, Florida, is presented as an example, with a $1.6 million asking price, $1.1 million in revenue, and almost $500,000 in cash flow. With 44% margins and a 3.3 times multiple, this business is particularly attractive.
Vet Clinics
Vet clinics are the ninth business opportunity, driven by the increasing demand for pet care. A vet clinic in Miami, Florida, is highlighted, selling for $650,000, generating almost $1 million in revenue and $450,000 in cash flow. With almost a 50% margin and a 1.4 times multiple, this business is attractive, but requires thorough due diligence to understand the low multiple and licensing requirements.
Auto Glass Repair
Auto glass repair is the tenth business opportunity. An auto glass repair business in Hamilton, Ontario, Canada, is presented as an example, selling for $900,000, generating around $600,000 in revenue and $300,000 in cash flow. With a 57% margin and a 2.7 times multiple, this business is highly attractive. Kenny expresses strong interest in buying this business due to its essential service nature and high cash flow margins.
